In this article, we discuss the 5 cybersecurity stocks to watch amid the Russian invasion of Ukraine. In order to read our detailed analysis of the Russia-Ukraine conflict and how it affects the cybersecurity industry, go directly to 10 Cybersecurity Stocks to Watch Amid Russian Invasion of Ukraine.
5. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 31
Fortinet, Inc. (NASDAQ:FTNT) is a California-based provider of cybersecurity services, including intrusion prevention, anti-malware, firewall, virtual private network, web filtering, anti-spam and application control services. On February 4, Wedbush analyst Daniel Ives reiterated an ‘Outperform’ rating on Fortinet, Inc. (NASDAQ:FTNT) shares, noting that the company’s Q4 earnings beat expectations, with billings coming in at $1.31 billion, signifying a 36% year-over-year growth. Fortinet, Inc.’s (NASDAQ:FTNT) guidance for 2022 is above expectations, Ives said, highlighting the company’s momentum heading into the year.
EPS for Q4 2021 came in at $1.23, above consensus estimates by $0.08. Quarterly revenue was recorded at $963.60 million, beating analysts’ forecasts by $2.08 million.
31 hedge funds were bullish on Fortinet, Inc. (NASDAQ:FTNT) at the end of the fourth quarter, with combined holdings worth $1.32 billion. This is down from 38 hedge funds holding $1.13 billion worth of stakes in Fortinet, Inc. (NASDAQ:FTNT) at the end of Q3 2021.
ClearBridge Investments, an investment firm, mentioned many stocks in its Q3 2021 investor letter, and Fortinet, Inc. (NASDAQ:FTNT) was one of them. Here’s what the fund said:
“Performance among our cohort of IT and Internet companies was mixed, with enterprise software makers thriving while more consumer-oriented stocks faced headwinds. Cyber security software maker Fortinet benefited from a heightened awareness of the need to protect against sophisticated attacks. We are attracted to the recurring revenue nature of these software companies that are increasingly delivering their products on a subscription basis through the cloud. Software business models also tend to avoid many of the inflationary issues facing companies with a physical product or
service.”
4. Tenable Holdings, Inc. (NASDAQ:TENB)
Number of Hedge Fund Holders: 33
Tenable Holdings, Inc. (NASDAQ:TENB) is next up on our list of the cybersecurity stocks to watch amid the Russian invasion of Ukraine. Hedge fund sentiment was positive on Tenable Holdings, Inc. (NASDAQ:TENB) in the fourth quarter, where 33 hedge funds reported holding shares in the company, up from 29 in the preceding quarter. The leading shareholder of Tenable Holdings, Inc. (NASDAQ:TENB) in the fourth quarter was RGM Capital, with 3.36 million shares valued at $185.14 million.
On January 18, research firm Wedbush added Tenable Holdings, Inc. (NASDAQ:TENB) to its ‘Best Ideas List’ and gave it an ‘Outperform’ rating. The firm noted that the company’s product efforts and driver of new sales are now ‘hitting a new gear’ and resulting in a stronger pipeline of deals, as the company’s cloud-based tenable.ep and tenable.io platforms are increasingly being adopted by more enterprise customers heading into 2022.
The company’s EPS for Q4 was recorded at $0.05, above consensus estimates by $0.03. Quarterly revenue was also above analysts’ forecasts by $4.47 million, coming in at $149.02 million and signifying a 26% year-over-year increase.
3. Varonis Systems, Inc. (NASDAQ:VRNS)
Number of Hedge Fund Holders: 33
Varonis Systems, Inc. (NASDAQ:VRNS) is a New York-based company that provides data security and analytics services and allows firms to manage and secure enterprise data.
On February 8, Craig-Hallum analyst Chad Bennett maintained a ‘Buy’ rating on Varonis Systems, Inc. (NASDAQ:VRNS) shares, whilst lowering the firm’s price target on the company to $65 from $80, citing a broader software multiple compression as a reason for the price target downgrade. The analyst noted that Varonis Systems, Inc. (NASDAQ:VRNS) stock continued to outperform, breaking Q4 guidance estimates in subscription revenue, total revenue, and income estimates. EPS was recorded at $0.16 for Q4, beating estimates by $0.03. Quarterly revenue stood at $126.58 million, surpassing estimates by $4.60 million.
Wedbush analyst Daniel Ives also kept an ‘Outperform’ rating on Varonis Systems, Inc. (NASDAQ:VRNS) shares, noting that the company continues to take market share and expand its client base, and posted a healthy 2022 guidance above analysts’ expectations.
Investors were keen on Varonis Systems, Inc. (NASDAQ:VRNS) stock at the close of the fourth quarter, where 33 hedge funds held combined stakes worth $294.8 million in the company. This is up from 27 hedge funds holding positions worth $298.4 million in Varonis Systems, Inc. (NASDAQ:VRNS) at the close of Q3 2021. Among the hedge funds being tracked by Insider Monkey, Tremblant Capital is a leading shareholder in Varonis Systems, Inc. (NASDAQ:VRNS) in the fourth quarter, with 1.85 million shares worth more than $90 million.
2. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 73
Palo Alto Networks, Inc. (NASDAQ:PANW) offers cybersecurity solutions including cloud security, firewall software, security analytics, and automation, threat intelligence, and cyber security consulting.
On February 23, BMO Capital analyst Keith Bachman raised the firm’s price target on Palo Alto Networks, Inc. (NASDAQ:PANW) to $630 from $615 and maintained an ‘Outperform’ rating, noting that the company offers solid growth potential combined with a “reasonable and defensible” free cash flow valuation. In January, research firm Wedbush added Palo Alto Networks, Inc. (NASDAQ:PANW) to its ‘Best Ideas List’ and gave it an ‘Outperform’ rating, noting a strong upward trajectory for the company as the market starts to fully appreciate the cloud transformation underway in 2022 and beyond.
As of February 25, Palo Alto Networks, Inc. (NASDAQ:PANW) gained 46.08% in the last 12 months, and 7.09% in the last one month, with shares trading at $569.75 on the NASDAQ stock exchange. EPS for Q4 came in at $1.74, above analysts’ expectations by $0.09. Palo Alto Networks, Inc. (NASDAQ:PANW) raked in $1.32 billion in revenue for the fourth quarter, which beat consensus estimates by $35.21 million.
As of the fourth quarter, 73 out of 924 hedge funds were long Palo Alto Networks, Inc. (NASDAQ:PANW), with a combined stake value of $6.47 billion. The same number of hedge funds held $5.89 billion worth of stakes in the company in the quarter before.
1. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 74
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a Texas-based cybersecurity firm that offers cloud-delivered protection across endpoints, cloud workloads, threat intelligence, managed security services, and IT operations management services.
In January, research firms Wells Fargo and Oppenheimer both added CrowdStrike Holdings, Inc. (NASDAQ:CRWD) to their list of ‘Top Picks’ for 2022, with ‘Overweight’ and ‘Outperform’ ratings, respectively. Andrew Nowinski of Wells Fargo sees CrowdStrike Holdings, Inc. (NASDAQ:CRWD) continuing to take market share with ‘one of the most comprehensive platforms in the industry, while Oppenheimer analyst Ittai Kidron sees the company has grown into a ‘best-of-platform’ security vendor which can sustain its strong revenue growth.
Out of 924 elite hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 74 were seen bullish on CrowdStrike Holdings, Inc. (NASDAQ:CRWD), the same number of hedge funds as the quarter before.
Carillon Tower Advisers, an investment firm, talked about CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q4 2021 investor letter, stating:
“CrowdStrike, a security software platform with leadership in protecting endpoints such as servers, computers, and other IT assets, delivered strong earnings results with exceptional recurring revenue and new customer growth. The firm’s shares were pressured in the quarter as valuation multiple compression punished high-growth stocks in a meaningful way. However, we don’t believe this to be company-specific and expect the firm to continue to execute well and exhibit positive fundamentals.”
You can also take a look at Billionaire Chen Tianqiao’s Top 10 Stock Picks and 10 Best Cryptocurrencies Redditors are Buying.
